Aura Biosciences stock holds $19 target at Citizens JMP

Published 19/05/2025, 09:56
Aura Biosciences stock holds $19 target at Citizens JMP

On Monday, Citizens JMP reaffirmed its Market Outperform rating for Aura Biosciences (NASDAQ:AURA) with a steady price target of $19.00. The company’s first-quarter operating expenses reached $29 million, surpassing the consensus estimates by $5 million but aligning with Citizens JMP’s projections. Aura Biosciences reported a net loss of $29 million, or $0.55 per share, which was greater than the anticipated $0.44 per share. According to InvestingPro data, the company is currently not profitable, with a significant -$101.6 million EBITDA for the last twelve months.

The biotech firm concluded the quarter with a robust $199 million in proforma cash. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, with an impressive current ratio of 11.06x, though it is quickly burning through its reserves. Aura Biosciences had previously estimated its cash reserves would last into the second half of 2026, and management has indicated that recent financing could extend this runway by an additional 6 to 9 months.

Citizens JMP updated its financial model for Aura Biosciences to reflect the company’s latest financial results, the recent financing, and details from the 10-Q filing. The firm also advanced the discount period in its discounted cash flow (DCF) analysis. A notable change in the model was the reduction of the discount rate from 12.5% to 11%, attributed to the removal of the cash overhang. This adjustment is expected to increase the potential upside of the stock, especially in anticipation of positive data from trials in choroidal metastases and non-muscle invasive bladder cancer (NMIBC) expected later in the year. The strong analyst consensus is reflected in InvestingPro data, showing price targets ranging from $19 to $23, suggesting significant potential upside from current levels.

In other recent news, Aura Biosciences has announced the pricing of its public offering, aiming to raise $75 million through the sale of over 11.7 million shares of common stock and additional warrants. The funds are intended to advance Aura’s clinical programs, including treatments for various cancers, and support general corporate purposes. Analyst Jonathan Wolleben from Citizens JMP reiterated a Market Outperform rating for Aura Biosciences with a $19 price target, highlighting the potential of Aura’s lead candidate, bel-sar, in the primary uveal melanoma market. Meanwhile, H.C. Wainwright raised its price target for Aura Biosciences to $25, maintaining a Buy rating, following progress in the development of Bel-sar for choroidal melanoma. The drug has received Orphan Drug and Fast Track Designations from the FDA and EMA, with significant trial updates expected in the coming years.

Additionally, Aura Biosciences has expanded its Board of Directors by appointing Teresa Bitetti, who brings extensive experience in oncology from her role at Takeda. This move is expected to aid the company’s progress in its clinical pipeline, particularly in ocular and urologic oncology. Bitetti’s background includes leadership positions at both Takeda and Bristol Myers (NYSE:BMY) Squibb, contributing to her expertise in the oncology sector. Aura’s ongoing trials for bel-sar in various indications continue to show promise, with updates anticipated throughout the year. These developments underscore Aura Biosciences’ commitment to advancing its therapeutic candidates and expanding its impact in the oncology landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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